E-Community Loan Programs

The McPherson County Entrepreneurship Community Loan Program was created through the Kansas Center for Entrepreneurship Tax Credit Program and Network Kansas.  The program is administered by the McPherson Chamber of Commerce to encourage entrepreneurial activity in the communities of McPherson County.

A Few Quick Facts

• Qualifying entrepreneurial projects may include startup businesses, existing business purchases and/or expansions in McPherson County.
• Must be a member of the McPherson Chamber of Commerce.
• Funding is provided at 4% for 1–5-year loans, and 6% for loan terms of 6-10 years. Length will be determined by amount borrowed. No penalty for early repayment.
• The minimum loan request is $5,000 and maximum is $50,000 for E-Community funding, or $100,000 for GrowKS funding.
• These funds are for “gap financing” and cannot exceed 40% of the total funding package.  To utilize the maximum 40% available from the E-Community Loan Fund there is a 60% match required from either a bank, or a Network Kansas Fund Partner (SBA, USDA, Main Street, South Central Kansas Economic Development Division (SCKEDD). The GrowKS Loan requires that the fund partner is a bank.
• Funds can be used to purchase business equipment, business inventory, real estate, working capital, existing inventory.
• Loan funds may not be used for: Paying off or refinancing existing debt, Salary or owner’s draw, Payroll taxes, Personal vehicles.
• Preference will be given to projects that create quality jobs, increase economic benefits, and improve property values and design.
• Businesses That Do Not Qualify: Non-profit organizations (Non-Profits DO qualify for GrowKS Loans), Academic institutions,
  Gambling concern, Floor planning concerns (i.e. wholesale auto inventory financing), Speculative concerns, Lending or investment institutions, Multilevel marketing or pyramid sales.
• Applicants who are not eligible: Convicted of felony offense, Past due on school loans, Past due on child support payments.
• Scoring will be based on Financial Soundness, Owner/Operator Experience, Business Plan, Projected Growth & Economic Impact
  Business Development Partnerships, Quality of Life Impact, Owner/3rd Party Funding, Community Commitment.

McPherson County E-Community
Loan Application Process

• Applicants will be required to complete the Universal Loan Application 2024 and return to the McPherson Chamber of Commerce office, 306 N. Main along with their $50 non-refundable application fee E-Community Required Documents.
• Upon receipt of an E-Community Application, the E-Community Team will schedule a meeting with the applicant, to review the project and loan request.
• After reviewing the application, the E-Community Team will approve or reject request for funds based on the rubric scoring. Click here for a copy of the Loan Scoring Rubric. A formal letter of acceptance or rejection will be sent to the applicant notifying of decision.
• An E-Loan Team media release will be created announcing acceptance of applicant and will include business summary, amount to be awarded, funding partners, NetWork Kansas partners assisting with project, and description of how funds will be utilized to add resources, jobs, increase tax revenue, and/or improve the quality of life in the McPherson County area.
• The business is required to be a member of the McPherson Chamber of Commerce for the duration of the loan.
• As of April 1, 2024, interest rates are structured as 4% if the loan is 5 years or less, and 6% for loans of 6-10 years. Complete application & detailed information is available for download here: Universal Loan Application 2024 or by calling the McPherson Chamber of Commerce at 241-3303.

The McPherson County Small Business Development Association is available to assist loan applicants at no charge in preparing a Business Plan, and any other necessary documentation to accompany your E-Loan application. Contact David O’Dell at 620-480-9137 to set up an appointment.

McPherson County E-Community Economic Development Vision Goal: Continue to support the collaborative business environment and provide resources to encourage entrepreneurship and expansion of existing businesses. 

GROWKS Loan Program

Providing pathways for inclusive lending to help make matching capital accessible to underrepresented entrepreneurs.

• GROWKS offers a variety of loan amounts of up to $100,000+
• Any private funds GROWKS matches must include funding from a financial institution (bank, CDFI, etc.)

FUNDING MAY BE USED FOR A VARIETY OF BUSINESS PURPOSES INCLUDING:

• Startup costs, Working capital, Franchise fees, Acquisition of equipment, Inventory. Services used in the production, manufacturing, or delivery of a business’s goods or services. Services used in the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes. Among other approved uses

TERMS

• 4 percent interest rate for one-year to five-year loans
• 6 percent interest rate for six-year to ten-year loans

GROWKS LOAN PROGRAM Frequently Asked Questions. 

Kansas was allocated $69M in U.S. Treasury State Small Business Credit Initiative (SSBCI) dollars. The programs created as a result of the allocation are the GROWKS Loan Fund ($42M) and the GROWKS Equity Programs ($27M). The following FAQs are related to the GROWKS Loan Fund.

Who can apply for a GROWKS Loan?
For-profit and non-profit new or existing Kansas small businesses (less than 500 employees) who fit the criteria for at least one of the GROWKS loan options, and have bank funding as part of the project are eligible to apply. The programs are also designed to focus on underserved geographies (rural/urban-distressed/ statewide), populations (minority/women/economically disadvantaged) and business types (target sector).

What Does a GROWKS Loan Project Look Like?
A bank, or other financial institution such as a Community Development Financial Institution (CDFI), is required to be part of the project, and the funding from the different sources should occur around the same time. GROWKS is for businesses seeking additional funds for startup and/or working capital, franchise fees, equipment, investor, purchase, construction, etc.

What Does a GROWKS Loan Project NOT Look Like?
A project with no bank involvement will not be able to access the GROWKS loans. Projects that are considered passive real estate, participate in speculative activities and develop profits from price fluctuations, engage in illegal activities, are using the funds to purchase stock ownership, and/or if there are conflicts of interest with business owner and/or the Applying Partner, and/or ASO and any family members

What types of funding can be included as part of GROWKS project?
A bank, or other financial institution such as a CDFI, is required to be part of the project. The following can count as a match but are NOT Required: Loan down payment and/or owner injection, family or friend investments, and/or other private investors. To count these dollars as a match there will need to be proof of these funds as part of the project. Typically, proof is a bank memo, copies of checks, or proof of bank deposits of the investment(s). Please no receipts for equipment, materials, etc. The following will NOT count as match but can be part of the project: local/regional revolving loan funds (RLFs), NetWork Kansas loan funds, other public sources of financing, grants, etc.

Is collateral required?
No. The GROWKS loans are not required to be collateralized. However, collateral position may be a consideration for the Review Committee(s). GROWKS will always be subordinate to any bank(s) involved in the project.

Is a personal guarantee required by the borrower(s)?
Yes. All borrowers who own 20% or more of the business are required to sign a personal guarantee.

How do small businesses access the Application?
Like all NetWork Kansas programs, potential applicants will need to be connected to a NetWork Kansas Partner. *Authorized E-Communities can make decisions on the Rural/Urban-Distressed and Minority/Women Starter GROWKS Loan programs. If your project will be in McPherson County, contact the McPherson Chamber of Commerce at 620-241-3303.

How often will applications be accepted and/or reviewed?
Rural/Urban Distressed and Minority/Women Starter Loan Applications will be accepted and reviewed as needed by the McPherson County E-Community Loan Review Committee.

Where can I go for more information? Visit www.growks.com or contact the McPherson Chamber of Commerce at 620-241-3303.